House Budget Chairman Unveils Plan to Fund Road and Bridge
Improvements without Raising Taxes or Incurring New Debt (HB 4)

House Budget Committee Chairman Cody Smith unveiled a
spending plan this week that makes a significant investment in state
transportation infrastructure without raising taxes or incurring new debt for
the state. Smith rolled out the committee substitutes for the appropriations
bills that make up the Fiscal Year 2020 state spending plan, which includes a
$100 million appropriation to pay for road and bridge improvements.

Smith said the $100 million in general revenue will be
dedicated to the State Road Fund for bridge projects in the Statewide
Transportation Improvement Program, which sets the transportation projects the
Missouri Department of Transportation will undertake. Smith emphasized the
importance of crafting a plan that provides adequate funding for Missouri’s
transportation needs without putting the state further into debt.

The funding allocation for transportation infrastructure is
contained in House Bill 4, which is one of the 13 appropriations bills that
make up the Fiscal Year 2020 state operating budget. The House Budget Committee
will work through the bills next week and consider potential amendments. The
House will then take up the bills on the floor during the week of March 25-29.

POACHING

Members of the House of Representatives have approved
legislation that would create stiffer penalties for poaching certain animals.

Supporters say the bill will address an issue that currently
exists where it’s cheaper for a non-Missourian to come into the state, poach an
animal, and pay the fine than it is to buy an out-of-state hunting tag. The
bill would increase the fines for poaching wild turkeys, deer, elk, black
bears, or paddlefish in Missouri. Specifically, it would make the fines range
from $500 to $1,000 for poaching a wild turkey or paddlefish; between $2,000
and $5,000 for poaching a white-tailed deer; and between $10,000 and $15,000
for poaching a black bear or elk.

“What I want to do is I want to make people think twice
before they pull the trigger,” said the bill’s sponsor.

Missouri in 2011 began bringing elk into the state from
Kentucky with an aim of reestablishing the population of the animal here, and
an eventual goal of having an elk hunting season. The Department of
Conservation says elk hunting could begin as early as next year and that could
bring millions of dollars into the state, but the sponsor said poaching is
hurting the chances of that happening, and the current fines for poaching are
not a deterrent.

“We’re spending on average about $30- to $40-thousand
dollars per elk when we brought them back to Missouri to reintroduce them and
the penalty to poach an elk is about $150 to $200 right now, if you’re caught,”
said the sponsor.

The poaching of paddlefish has been very lucrative because
paddlefish roe is often sold on the black market as caviar. This means one fish
can be worth thousands of dollars. Supporters say they are happy the bill
includes increased fines for poaching those fish.

When a fine is collected under HB 260 that money would go to
the school district in which the poaching incident occurred.

WORKFORCE DEVELOPMENT Legislation is now headed to the
Senate that would allow the Missouri Department of Economic Development to
improve and consolidate its workforce development programs. House members approved
the bill that allows the department to consolidate three work force training
programs into the Missouri One Start program.

The bill sponsor said the consolidation of the programs will
allow for more flexibility and efficiency, and will allow more businesses to
take advantage of the program. He noted that the changes will be possible
without the need for additional funding. “This is our Department of Economic
Development coming to us asking us to allow them to be more efficient and run
better,” he said.

Currently, the program allows administrative expenses to 15
percent of total training costs. The bill approved by the House limits such
expenses to a reasonable amount determined by the Department of Economic
Development. In creating rules and regulations governing the Missouri One Start
Training Program, the bill requires the department to consider such factors as
the potential number of new jobs to be created, the amount of new capital
investment in new facilities and equipment, the significance of state benefits
to the qualified company’s decision to locate or expand in Missouri, the
economic need of the affected community, and the importance of the qualified
company to the economic development of the state.

The bill also allows the department to require a qualified
business to repay all benefits if such business fails to maintain the new or
retained jobs within five years of approval of benefits or if such business
leaves the state within five years of approval of benefits.

OTHER LEGISLATION

HB 588 requires the Department of Agriculture to convene a
work group every five years to review all fees charged by the department and
submit a report to the General Assembly on any recommended changes to the fees.
The bill also increases the fees for several programs and licenses within the
department’s Plant Industries Division. Supporters say it is important to
adequately fund the Department of Agriculture because it provides important
services to the largest industry in the state. Many of the fees have not been
increased since the 1980’s and are not covering the cost of implementing the
associated programs. It is also important to review the fees associated with
the programs regularly and ensure the department is fully funded.

HB 333 extends the sunset date for an income tax credit for
surviving spouses of public safety officers who are killed in the line of duty
from 2019 to 2027. The bill subtracts interest received on deposits held at a
Federal Reserve Bank from a taxpayer’s Missouri adjusted gross income.
Supporters say right now banks are paying both corporate tax and bank tax on
interest held in the Federal Reserve Bank and this bill removes the tax they
have to pay on corporate tax. Under this bill, Federal Reserve Bank interest is
reported clearly in only one place and will eliminate any confusion.

HBs 161 & 401 prohibits local school districts from
setting an opening date for the school term that is more than 14 calendar days
prior to the first Monday in September. Supporters say that as school start
dates have become earlier, students who participate in fall sports and
agricultural education have had to choose between the two activities. It has
hurt more than just those students participating in agricultural education
events; it has hurt the tourism industry as well.

HB 220 specifies that any real or tangible personal property
associated with a project which uses wind energy directly to generate
electricity shall be valued and taxed by any state and local authorities having
jurisdiction. Supporters say the bill would allow the tax revenue generated by
the wind energy project to stay in the local jurisdiction. Local governments
used tax incentive programs to attract wind generation projects knowing that
the project would bring additional tax revenues to the area. Without this bill,
that additional tax revenue would be spread across the state, with little to no
revenue remaining in the local jurisdiction.

HB 587 repeals the Missouri Treated Timber Law. Supporters
say Missouri is the only state left to have a program similar to this. A
national wood products association also offers certification. Many retailers
are inspected by the department and the association.

HCR 18 urges public schools to institute JROTC in their
schools. Supporters say very few schools in the state currently offer the
program which includes many skills that would help a participant gain
employment.

REAL ID

Missourians received good news this week as the Missouri
Department of Revenue announced that it is on schedule to offer REAL
ID-compliant driver licenses and nondriver identification on March 25. The REAL
ID-compliant forms of identification will be necessary effective Oct. 1, 2020
for residents to fly domestically.

It was during the 2017 legislative session that Missouri
General Assembly approved legislation to give residents the option to obtain a
photo ID that is compliant with the federal REAL ID Act. Because the current
version of the Missouri driver license is not compliant, DHS announced in
January of 2016 that Missourians would not be able to enter federal facilities
and would not be able to fly domestically beginning in 2018. The federal
government has since granted multiple extensions to give Missourians additional
months to utilize their existing licenses.

The revenue department director said, “We look forward to
being able to start offering REAL ID-compliant driver licenses and ID cards on
March 25. However, we want to stress to our customers that there’s no immediate
need to rush to apply because the current Missouri-issued license and ID card
will afford the same access as a REAL ID-compliant license or ID card until
October 2020.”

Effective Oct. 1, 2020, individuals will also be required to
present a REAL ID-compliant driver license or ID card, or another form of
acceptable ID, to access federal facilities, including military bases and
federal courthouses, and to enter nuclear power plants.

The Department anticipates increased foot traffic and longer
wait times at license offices in the weeks immediately following the start of
REAL ID-compliant license and ID card availability.

The transaction and processing fees for a REAL ID-compliant
license or ID card, new or renewal, will be the same as they are currently.

Visit dor.mo.gov/drivers/real-id-information/ for a complete
listing of acceptable documents for REAL ID-compliant license and ID card
processing, as well as other important information regarding REAL ID. For more
information about the REAL ID Act, visit the U.S. Department of Homeland
Security website at dhs.gov/real-id.

LIVE STREAMING

Committee Chairs were updated this week that beginning on
Monday, the majority of committee hearings in the House will now be live video
streamed on the official website of the Missouri House of Representatives. Prior to the start of the 2019 legislative
session, the Speaker directed House staff to implement a system to allow for
video streaming of the majority of House committee hearings. The system that is
now in place will allow all hearings that take place in House Hearing Rooms 1,
3, 5, and 7 to be streamed. Missourians can watch the feed by visiting www.house.mo.gov
and clicking the “Hearing Room Feeds” link.

This is part of our ongoing commitment to improve government
transparency by giving Missourians a front row seat to observe the legislative
process in action. While hearings will
be streamed, by default, the hearings (other than Budget) will not be
recorded. If you would also like to have
your hearings recorded and archived, please contact Trevor Fox in House
Communications to arrange for that.

Thank you for reading my capitol report. I am honored to
represent you.

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